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ENGLEWOOD, Colo., March 11 /PRNewswire/ -- T-NETIX, Inc. (Nasdaq-NNM: TNTX), a leading provider of fraud-prevention and automated call processing services used by the telecommunications industry, announced today revenue and net earnings for its second fiscal quarter ended January 31, 1996.

Revenue increased 23% to $8,220,000 for the three months ended January 31, 1996 from $6,658,000 for the year-ago quarter. Net earnings decreased to $562,000 or $.06 per common share for the quarter compared to $972,000 or $.11 per common share for the comparative period.

Revenue for the six months ended January 31, 1996 increased 39% to $16,510,000 from $11,907,000 for the year-ago period. For the six months ended January 31, 1996, net earnings decreased to $1,219,000 or $.13 per common share as compared to $1,431,000 or $.18 per common share.

The revenue increases for the three months and the six months ended January 31, 1996 are a result of the increase in the Company's installed base. The Company processed 19,715,000 and 38,352,000 calls for the three and six months ended January 31, 1996, respectively. This represents a 25% and 42% increase, respectively, over the similar periods in the prior year.

The recent quarter per share calculations were based on 9,058,000 weighted average shares outstanding compared to 8,832,000 shares for the same period a year ago.

"Revenue and earnings for the quarter are in line with analyst estimates," said Thomas J. Huzjak, chairman and chief executive officer of T-NETIX. "We are pleased with the results of our cash flows for the quarter. Cash flow from operations increased to $2,655,000 for the six months ended January 31, 1996 as compared to cash used in operations of $179,000 for the same period a year ago. The increase in cash flows is consistent with our operational model of using increasing cash flows from operations to fund our investment in current and future technologies and new market expansion efforts.

"Impacting current earnings are our continuing investments in research and development and intellectual property protection," added Huzjak. "Regarding the latter, the Company believes that it is important to continue to invest in the protection of our Strike Three! intellectual property against infringing companies and unfair competition. In the next few quarters, the Company believes it will see the beginning of revenue increases as a direct consequence of our favorable settlement of the CEECO patent infringement case. Today we are the only provider of proven-effective 3-way call prevention, a 'mission critical' technology in the corrections calling market. This industry leadership can only be strengthened with similar outcomes in our current pending cases.

"The continuing investment in our SpeakEZ subsidiary is consistent with the Company's strategy to be first to market with a commercially viable voice print technology. We believe this technology will address fraud and security problems existing in several major markets including wireless and wireline telecommunications, financial services and even network commerce.

"The last quarter has been very busy with negotiations with several major telecommunications and financial services providers for their technical evaluations of our SpeakEZ Voice Print speaker verification services. We expect to begin such trials in each of our target markets during the next several quarters and hope to see the first commercial sales in our next fiscal year," added Huzjak.

Based in Englewood, Colorado, T-NETIX provides specialized call processing services on a transaction fee basis to the telecommunications industry including AT&T, Bell Atlantic, U S WEST, Southwestern Bell, NYNEX, Pacific Telesis Group and other call providers. The Company's patented software and speaker verification technology prevents telecommunications fraud.
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/CONTACT: Al Schopp, CFO of T-NETIX, 303-790-9111; or Wayne Brown, Account Supervisor of Carl Thompson Associates, 303-494-5472/


CO: T-NETIX Inc. ST: Colorado IN: TLS SU: ERN

KL-KW -- LAM024 -- 0687 03/11/96 10:02 EST
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Publication:PR Newswire
Date:Mar 11, 1996

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